The Value of Domain Names

The Value of Domain Names

When considering the value of business, many things are considered. Part of the value of a business is brand recognition and in a world powered by information on the Internet, a Domain Name is a significant part of a business’s brand. That domain has value, at times, incredible value that is directly proportional to that business’s brand recognition. Sometimes, the only way people know how to find a business is through their online presence, which is their domain name. Domain name value, then, is a tangible thing that has some metrics that can give you an idea of what it is worth. This article will go over some of the things that contribute towards or against a domain’s valuation.

What gives your Domain Value?

Web traffic

The easiest metric to think about is how many unique visits the domain receives. The more popular a domain is, the more valuable it is. Even if the domain is bought by another company, the domain will haul some of the original site users with it, generating traffic for the new users. More traffic means more value.

Format of the Domain Name

Simple, easy to remember domain names are more valuable than longer and complex domain names. As such, the most valuable domain names are short, one word domain names. The longer and more complex the domain name is, the less the value. Spelling is key as well; a word spelled normally will have a higher percentage chance of being visited, even by accident, than one that has an abstract spelling and thus normal spelling creates more value.

Domain Age

The older a domain is, more value that the domain potentially has. This is because search engine algorithms like the ones used by Google take into account age when they measure the credibility of a website. It is assumed that a domain that has existed for a long time is a credible information source and will rank higher in the standings.

Raise your Domain’s Value

Obviously the factors above are also a list of things to improve upon to raise the value of your domain. But, there are other components that will help you generate more traffic and thus raise the value of your domain. Content is a key element to this, more content has a higher chance of ranking higher on search engine lists, resulting in more traffic. Marketing your site also helps, the more other websites reference your domain (link building), the more trust or authority the domain has and as such, the higher it will rank in the search engines. Social media can also generate more traffic. When it comes to domain valuation, more traffic means more value.

So you can see some simple metrics to estimate your domain’s value. There are free valuation tools available such as Estibot that can give you an initial indication of value. If you are looking to buy a domain, OY! Domains would be happy to assist you in aligning your domaining goals.

How do you value domains? Please share your thoughts in the comment section below.